Natwest and RBS Reward accounts

waqasahmed

Hi

I've had a look at these accounts and they cost £2 to maintain but give you £4 if you have at least two direct debits at £2 or more and another £1 to login each month. You effectively start with a minus £2

Do you not then actually lose at least £1-£2 each month?

Using simple maths I get this 

(-2 - 2 - 2) + 4 = - 2
-2 + 1 = - 1

So either a minus £2 or a minus £1 if you login once a month? 

JGB1955

You start with a charge of £2 per month, offset by a credit of £5 for the two direct debits and one login.  Net result is £36 per annum.  The two direct debits aren't a charge as such - they are bills that you would be paying anyway.  Ours would be Council tax, gas, electricity, broadband etc etc

Zanderman

Not sure about your maths!

You pay £2 for the account.

You can earn rewards of up to £5 (£4 for 2 DDs and £1 for a mobile login).

That's a net gain of £3.

The DD's are not a loss.  They'll be something you're paying for anyway. 

grumiofoundation

waqasahmed said:

Hi

I've had a look at these accounts and they cost £2 to maintain but give you £4 if you have at least two direct debits at £2 or more and another £1 to login each month. You effectively start with a minus £2

Do you not then actually lose at least £1-£2 each month?

Using simple maths I get this 

(-2 - 2 - 2) + 4 = - 2
-2 + 1 = - 1

So either a minus £2 or a minus £1 if you login once a month? 

You seem to be assuming the direct debits are wasted money. 

RG2015

Even if you regard the direct debits as costs it is a starting point of plus 1 not minus 1.

£4 + £1 - £2 - £2 = £1

Ed-1

RG2015 said:

Even if you regard the direct debits as costs it is a starting point of plus 1 not minus 1.

£4 + £1 - £2 - £2 = £1

Not with the account fee.

RG2015

Ed-1 said:

RG2015 said:

Even if you regard the direct debits as costs it is a starting point of plus 1 not minus 1.

£4 + £1 - £2 - £2 = £1

Not with the account fee.

Apologies, my mistake. I thought the DDs were at least £1 each.

waqasahmed

grumiofoundation said:

waqasahmed said:

Hi

I've had a look at these accounts and they cost £2 to maintain but give you £4 if you have at least two direct debits at £2 or more and another £1 to login each month. You effectively start with a minus £2

Do you not then actually lose at least £1-£2 each month?

Using simple maths I get this 

(-2 - 2 - 2) + 4 = - 2
-2 + 1 = - 1

So either a minus £2 or a minus £1 if you login once a month? 

You seem to be assuming the direct debits are wasted money. 

I guess for myself, they are given I have Santander to do billing where I get cashback 

General_Grant

waqasahmed said:

grumiofoundation said:

waqasahmed said:

Hi

I've had a look at these accounts and they cost £2 to maintain but give you £4 if you have at least two direct debits at £2 or more and another £1 to login each month. You effectively start with a minus £2

Do you not then actually lose at least £1-£2 each month?

Using simple maths I get this 

(-2 - 2 - 2) + 4 = - 2
-2 + 1 = - 1

So either a minus £2 or a minus £1 if you login once a month? 

You seem to be assuming the direct debits are wasted money. 

I guess for myself, they are given I have Santander to do billing where I get cashback 

I'm sure there could be DDs where Santander would not give you cashback.  But if the only DDs you are willing to have also give you cashback through Santander then I can understand why the RBS/NatWest Reward accounts are not for you.

Zanderman

waqasahmed said:

grumiofoundation said:

waqasahmed said:

Hi

I've had a look at these accounts and they cost £2 to maintain but give you £4 if you have at least two direct debits at £2 or more and another £1 to login each month. You effectively start with a minus £2

Do you not then actually lose at least £1-£2 each month?

Using simple maths I get this 

(-2 - 2 - 2) + 4 = - 2
-2 + 1 = - 1

So either a minus £2 or a minus £1 if you login once a month? 

You seem to be assuming the direct debits are wasted money. 

I guess for myself, they are given I have Santander to do billing where I get cashback 

There are lots of DDs that you can set up that won't lose money - you just need to go to some extra trouble. There are still a few (though dwindling) savings accounts I think that allow pay-in via DD - and that's paying yourself so is no loss.  If that's not an option there are many other things other than utility bills that can be paid via monthly DD.  Car tax for example. Also TV licence.  Membership of clubs or societies.  Or simply Paypal, used at least once a month.  Lots of others potentially, all dependent on your circumstances.

But, basically, the RBS/NatWest Rewards account is designed for people who use it as a main account and pay their bills through it.  So for anyone using the account like it's intended there is a net gain every month.  As there is for anyone prepared to go some trouble over their DDs. 

ischris85

Is this really a thread about why -2 + 4 + 1 = 3